March 4, 2004

One Record Industry Story [8:14 am]

Here’s a business model: Sex, Drugs and Ego: A Music Mogul’s Swath of Destruction

Mr. Yetnikoff took over CBS Records in 1975. In the years to come, the music industry would experience explosive growth with the advent of the CD. Under his watch CBS’s annual revenue grew from $485 million to well over $2 billion. He engineered the sale of CBS Records to Sony for $2 billion in 1987. At the time, he signed a multiyear contract that was widely reported to have included a $20 million bonus. Drugs and alcohol, however, destroyed all he had built, including his relationships with colleagues and artists like Mr. Jackson and Mr. Springsteen. In 1990, Mr. Yetnikoff wrote, he was “unceremoniously canned” by Sony.

See also the book review: A Dizzying Ride on the Turntable

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